‘The tapering down of the temporary reduction in stamp duty began at the end of June, meaning this was a ‘bumper month’. Investors, homeowners, solicitors and banks pushed hard to get transactions done in time for buyers to capitalise on the summer discount to an otherwise costly transaction tax.
‘Medium term, the boom in housing transactions has in many ways resulted from Covid and and policies around it, designed to protect consumer and investor confidence, rather than happening despite the pandemic.
Specifically, housing transactions were boosted on by the temporary stamp duty reduction designed to fuel the housing market amidst the pandemic, lockdown-led upsizing and a flight to safer assets alongside long-term low interest rates.
‘The boom in demand shown by the transactions data over the last year, in particular in June 2021, set against limited supply, has created house price growth.
Read More: FTSE 100 rebounds; UK property transactions surge ahead of stamp duty